Traditional telecom and cellular industry in Developed World Essay

Traditional telecom and cellular industry in Developed World - Essay Example While the traditional telecom industry has revolutionised the whole concept of communication and shorten distance between the continents, the invention of cellular services has totally changed the ways of information and communication. Telecommunications rollout boosts economic growth and enhances consumer well-being in the global trade and information scenario. As wireless technologies require much lower cost to roll out over large areas than fixed line systems, mobiles can potentially play a vital role in economic development. Mobile communications have contributed significantly towards enhancing income and improving quality of life in the developed world. Cellular phones have played a vital role in enhancing social capital and thereby significantly improve competitiveness of business and reducing cost in many developed world. Today about 100 percent of American citizens between the age of 20- 50 uses cellular phones. The technology in this sector has witnessed a dramatic change with the introduction of many digital based solutions. Every day cellular companies are incorporating new services to woo more customers. Today cellular phones have attained a new role as a total solution provider at a finger touch. The celluar phones are also work as a personal computer and provide all the services of a personal computer. According to eT Forecasts's report, Cellular Subscriber Forecast By Country, the total number of cellular subscribers world wide was only 11 million in 1990 and among them 49 percent were in USA. From 1990-2005, cellular subscriber number grew by 187 fold to 2,065 million. But in this period share of US in the total number of subscribers fell below 10 percent. It is estimated that the subscriber base in USA would be increased from 202 million in 2005 to 293 million by 2010.The traditional teleco m sector in USA has also increased considerably during 1990-2005. It was 132 million traditional telecom lines in 1990 but it has increased to 177 million in 2005. According to eTForecastes, there are a number of reasons for major drive of cellular industry in developed world. It says that network expansion, text messaging, multiple SIM cards, camera phones, family plans and expansion of 3G network where instrumental in strong growth of cellular industry up to the year 2005. But it will be Multi-function handsets, 3G & 3.5G network expansion, un-metered data pricing, multiple SIM cards and machine to machine, MMS and video services and internet access and new content will be the driving force from 2006- 2010. The report also cautions that the subscriber growth in developed countries would be limited as the market has already reached at a saturation level. So machine-to-machine (M2M) communication where embedded wireless modems are used for data transmission is termed as one of the potential area of growth. In the next decade the cellular industry will witness a dramatic change in its look and content. The mobile handsets may get new utilities and will be a communication tool for voice, data, pictures and video content. The handsets will work as a personal computer, which can use for all type of computing and data storage for business and personal contents. It can be also used as a personal identification device for financial